CHNGQ (China Natural Gas) ROCE %: 2.39% (As of Sep. 2013)

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What is China Natural Gas ROCE %?

China Natural Gas CHNGQ -95.00% ROCE % is 2.39% as of Sep. 2013.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. China Natural Gas's annualized ROCE % for the quarter that ended in Sep. 2013 was 2.39%.

China Natural Gas  (OTCPK:CHNGQ) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

China Natural Gas ROCE % Related Terms

China Natural Gas ROCE % Historical Data

* Premium members only.

The historical data trend for China Natural Gas's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

China Natural Gas ROCE % Chart

China Natural Gas Annual Data
Trend Jul03 Jul04 Jul05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.46 15.69 9.89 8.71 6.83

China Natural Gas Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.01 13.25 10.87 7.47 2.39

China Natural Gas ROCE % Calculation

China Natural Gas's annualized ROCE % for the fiscal year that ended in Dec. 2012 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2012 )  (A: Dec. 2011 )(A: Dec. 2012 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2012 )  (A: Dec. 2011 )(A: Dec. 2012 )
=15.507/( ( (276.984 - 32.171) + (288.501 - 79.499) )/ 2 )
=15.507/( (244.813+209.002)/ 2 )
=15.507/226.9075
=6.83 %

China Natural Gas's ROCE % of for the quarter that ended in Sep. 2013 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2013 )  (Q: Jun. 2013 )(Q: Sep. 2013 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2013 )  (Q: Jun. 2013 )(Q: Sep. 2013 )
=5.304/( ( (299.496 - 79.23) + (307.497 - 84.14) )/ 2 )
=5.304/( ( 220.266 + 223.357 )/ 2 )
=5.304/221.8115
=2.39 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2013) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 2.39% mean?
China Natural Gas (CHNGQ) has a ROCE % of 2.39% as of Sep. 2013.
Is China Natural Gas' ROCE % too high?
China Natural Gas' current ROCE % is 2.39%. The Utilities - Regulated industry median ROCE % is 6.94. China Natural Gas' value of 2.39% is 65.6% below this industry median.
How does China Natural Gas' ROCE % compare to SXEEQ and CNIG?
China Natural Gas' ROCE % of 2.39% can be compared against companies in the Utilities - Regulated industry. The industry median ROCE % is 6.94. China Natural Gas' value of 2.39% is 65.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Utilities - Regulated company?
The median ROCE % among Utilities - Regulated companies is 6.94, based on 505 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Natural Gas's current ROCE % of 2.39% is 65.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Regulated industry, the median ROCE % is 6.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Natural Gas's current ROCE % is 2.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Natural Gas stock overvalued right now?
China Natural Gas (CHNGQ) has a current ROCE % of 2.39%. The current ROCE % is 2.39% and 65.6% below the Utilities - Regulated industry median of 6.94. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For China Natural Gas (CHNGQ), the current ROCE % is 2.39% as of Sep. 2013. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

China Natural Gas Business Description

Address 35 Tang Yan Road, 19th Floor Building B, Van Metropolis, Hi-Tech Zone, Shaanxi Province, Xian, CHN, 710065
China Natural Gas Inc through its subsidiaries engages in sales & distribution of natural gas and gasoline to commercial, industrial & residential customers, construction of pipeline networks, installation of natural gas fittings & parts for end-users.